Low-income households

As many as 12 per cent of households are finding it difficult to manage financially, and a further 27 per cent are 'just about getting by', according to the first in a series of five annual reports on financial inclusion from Birmingham University researchers.

Some of the poorest families in England are at risk from changes to the Social Fund for people in financial crisis, says a report from the Children's Society charity. Key parts of the Social Fund have now been devolved to local authorities: but researchers found that the money given to local authorities to replace the Fund is less than half of what used to be allocated to it.

Even a very modest rented home is beyond the reach of low-income households in 33 per cent of all local authority areas, says a new report from the Resolution Foundation think tank. It described the results of its research as 'alarming'.

The report uses independent housing market data to examine the situation of a couple with one child, and an annual net income of £22,000, to see where they can afford to live if they spend no more than 35 per cent of their net income on housing – a widely accepted definition of affordability.

This working paper provides a review of the qualitative evidence base relating to the experience of poverty and social exclusion in the UK for which to date few systematic reviews exist. Its principal objective is to identify gaps in the current evidence base in order to inform the design and conduct of the Phase II Qualitative Research of the PSE 2011, ‘Understanding Experiences of Low Income During Recession’. It is also intended that the review will act as a resource for further aspects of PSE UK research.

Key markets for utilities and financial services are failing those on the lowest incomes, says a new report. It calculates that higher prices for utilities and credit – the 'poverty premium' – can raise the cost of a minimum household budget by around 10 per cent.

The PSE linked up with Poverty Alliance Scotland to highlight key findings from their ‘EPIC’ project. This project brings together people directly affected by poverty with policy and decision-makers to achieve change. A key issue experienced by people on low-income is the stigma of poverty.

Working-age households without children have seen their incomes hit harder by the recession than any other group, according to a study by the Joseph Rowntree Foundation. Young single adults have also suffered compared with others.

The study (the first in an annual series) examined changes in the adequacy of household incomes in the early part of the latest recession, and identified the risk for different groups of being below the minimum income standard (MIS) – defined as the income people need in order to reach a minimum socially acceptable standard of living in the UK today, based on what members of the public think.

Family allowances are less effective than policies such as childcare and parental leave in reducing household income inequality, according to a research study of a range of developed countries.

American academics looked at how welfare state policies were related to households' relative incomes for 17, mainly European and north American, countries between 1985 and 2005. They focused on the intersection between household income, family structure and parental education level.

Over half of parents in lower-income groups cannot afford to organise birthday parties for their children, according to the findings of a new survey. An opinion poll was combined with focus group research to give a picture of the financial stress surrounding children's parties for those in poverty.

People on low incomes needing emergency financial help are likely to be faced with a 'postcode lottery' of provision following the abolition of the Social Fund, according to a new study. The Centre for Responsible Credit warns some people will be forced to turn to commercial high-cost lenders as a result.

The DWP-administered Social Fund – which provides community care grants, crisis loans for living expenses and budgeting loans – is being abolished from 1 April 2013, and the budget for the Fund is being devolved to local areas. Local councils in England, together with the Welsh and Scottish Governments, are now free to devise replacement schemes of their own using the money.

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PSE:UK is a major collaboration between the University of Bristol, Heriot-Watt University, The Open University, Queen's University Belfast, University of Glasgow and the University of York working with the National Centre for Social Research and the Northern Ireland Statistics and Research Agency. ESRC Grant RES-060-25-0052.